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03 июля 2014 14:35
Pension reform may spawn shadow economy in Kazakhstan: expert
The new coil in Kazakhstan's pension reform may lead to expansion of the shadow economy, Tengrinews reports citing a Tengri FM interview with a senior analyst of the Agency for Return on Investments Research Yerlen Badykhan.
The Ministry of Labour and Social Protection of Kazakhstan initiated a new provision for the pension reform that obliges companies to allocate additional 5 percent of the employee’s salary into so called "nominally saving" pension accounts. These new 5% will come as an addition to the regular 10%. However, unlike the 10% they are not going to be accumulated at the pension accounts, but will be used to pay pensions now to those who are already pensioners.
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